Fighting Youth Unemployment in
Bosnia and Herzegovina:
A promising sector for non-state actors
NERMINA BLAŽEVIĆ (BOSNIA-HERZEGOVINA)
Masaryk University Brno (Czech Republic)
Paper for the 2012-edition of the international (post)graduate course on Inclusion and Exclusion in
Contemporary European Societies: ‘Challenges of Europe, the Strength of Soft Power’.
April 16-20, 2012 | Dubrovnik (Croatia)
www.inclusionexclusion.eu
Challenges of Europe: Inclusion and Exclusion in Contemporary Society
May 24, 2012
CONTENT:
1. Introduction
2. The Issue
3. Background
4. Causes and Effects
5. Policy Proposal
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Introduction:
When we are young, we have a lot of ambitions and aspirations. We want to construct
them around our desires, which will ultimately help shape our own “identity”. At the peak of
our youth, we have to confront ourselves with “the real world” for the first time, a place in
which we exhibit a lack of experience.
In today’s capitalist society young people have to face many obstacles, especially if
they come from Bosnia and Herzegovina. They go to grammar school, move on to fight their
way through high school, and eventually attain a college degree, and then what? One of the
biggest obstacles facing the youth in Bosnia and Herzegovina is unemployment. In my
opinion, unemployment among young people creates a feeling of uselessness and absurdity,
fueling a loss of that sense of hope, a loss of that youthful energy that is full of enthusiasm,
ideas, ambitions and dreams of a “better tomorrow”. Unemployment is, therefore, one of the
basic causes of social exclusion.
This paper deals with unemployment as one of the key examples of social exclusion in
Bosnia and Herzegovina, the country where I come from. The focus will be on the cause and
effect of this construct with a look into possible solutions which could help to resolve this
social issue.
When it comes to social exclusion it is important to keep in mind that reference is
made to a process whereby an individual is unable to fully integrate into society and
participate in economic, social and cultural life due to poverty, insufficient education and
discrimination. A socially excluded person has limited possibilities to exercise his/her right
for sufficient income, essential services and goods. These people have to be integrated into
social and cultural life, which is believed to sustain quality of life and welfare, as well as
wider possibilities of participation in decision making processes and accessibility of base
values (Peace 2001). French sociologist Emile Durkheim voiced his concerns about social
exclusion and pointed out that poverty, unemployment and other types of social disadvantages
are results of social exclusion, a construct that could jeopardize social and state order as well
as overall stability (1895).
Social exclusion is a multidimensional social process characterizing society’s inability
to provide each of its members with equal opportunities to benefit from economical
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development and to enjoy social and cultural life. Social exclusion can be related to
unemployment and lack of material resources, on one side, and on the other side, social
exclusion can also be explained by low income, which mostly excludes people from
participation in important social, political and cultural activities. From this standpoint, social
exclusion presents a fundamental base for isolation and alienation.
Kronauer (1998) provided a comprehensive theoretical definition of social exclusion
based upon the usage of the term in France and the concept of the lower class in the United
States. He developed his understanding of this social issue in light of the current
unemployment crisis. In his opinion, the ever increasing unemployment rates are becoming a
permanent social reality, coupled with the consequence that more and more people are unable
to lead a life befitting of the societal standards for material and social well-being, a scenario
also applicable to the case of Bosnia and Herzegovina. Different lifestyles, the quality of life
within the cycle of unemployment and the drastic poverty rate are all just a number of
examples showing that all aspects of living have to be taken into account. Upon having done
proper research on this social issue, it appears that young people facing unemployment are the
most vulnerable group. Of course, this depends on individual and personal social resources.
Almost all literary sources emphasize that unemployment is an essential cause of
social exclusion. There is a direct relation to the labor force market. Therefore it is important
to foresee and address the portion of voluntary long-term unemployed who could be
integrated into the labor market. The necessary foundation for that integration would also
have to be established.
The Issue:
Unemployment can be defined as one of the crucial problems of our times, especially
if you live in a country such as Bosnia and Herzegovina and happen to belong to the group of
young individuals. The United Nations views the youth as individuals between the ages of 15
and 24, yet UNESCO considers young people to be a heterogeneous group in constant
evolution and that the state of “being young” varies enormously across regions and within
countries (UNESCO 2012).
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One of the most important issues, especially for young people in Bosnia and
Herzegovina, is unemployment. According to the latest government statistics from December
2011, more than 536,728 people do not have jobs and most of them are in the youth bracket
(Agency for Statistics Bosnia and Herzegovina 2012). To be precise, according to the CIA
World Fact Book from 2008, Bosnia and Herzegovina took fourth place in the worldwide
unemployment ranking with a 47 percent unemployment rate among young people between
15 and 24 years of age (Index Mundi Data Portal 2012).
According to the Commission for the Coordination of Youth Issues in Bosnia and
Herzegovina, people between the age of 15 and 30 are considered to be a part of the “youth”
group. The total number of young people in Bosnia and Herzegovina is around 777,000
(which is almost less than half the number it used to be back in 1991).
Based on all accessible official data, unemployment is the number one problem among
young people in Bosnia and Herzegovina. Over 60 percent of young people are unemployed
(Commission for the Coordination of Youth Issues in Bosnia and Herzegovina 2012). Of
these 60 percent:
-
13,4 percent of unemployed were unemployed for less than 12 months,
-
half of them have been unemployed for over 2 years,
-
one fifth of them have been unemployed for over 5 years.
It is important to emphasize that the unemployment rate is a key indicator of labor
market conditions. That rate shows the overall health of one state’s economy. From this
statistic data we can conclude that Bosnia and Herzegovina has structural problems with high
and persistent unemployment. It is obvious that unemployment is directly associated to loss of
income and often leads to poverty. Other consequences of prolonged unemployment are total
erosion of skills and morale, and in the end possibly even total social marginalization.
Background:
The first stage in tackling a social problem or issue that can lead, or has already led, to
social exclusion is to raise awareness. Secondly, it is necessary to extract all the relevant facts
which are causing this issue and lastly, it is important to put remedial measures in place. This
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paper points out the real issue at hand, the extent of the problem, and what can be done to
solve it.
It is obvious that the youth unemployment rate is alarmingly high in Bosnia and
Herzegovina. The rate is the product of the general lack of jobs, not the lack of young people
in the market. The educational level and the field of expertise also play a big role. In this
country in particular, these concepts are not harmonized at all.
What are the main causes of this high rate of unemployment among young people?
One of the reasons bringing unemployment about are institutional and structural
changes that are directly associated with the economic transition after the dissolution of
Yugoslavia in 1990. The structural imbalances in the labor market are very characteristic for
almost all economies in transition. This is exhibited by a total disorder in the structure or total
“mismatch” between supply and demand for labor in terms of occupation, education,
qualification or regional distribution. The “mismatch” occurs when demand for one type of
labor increases while the demand for another kind decreases due to various reasons. The
dissolution of Yugoslavia resulted in various economic changes for all six republics that were
part of ex Yugoslavia. Those changes were economic liberalization, privatization, hard budget
constraints, the emergence of market competition and disintegration, etc. In this sense, the
market in a young independent country such as Bosnia and Herzegovina was not ready for the
resulting structural changes and imbalances which were also stimulated by the legacy of war,
unresolved political relations and inadequately harmonized rules that still happen to govern
the area.
One of the most important reasons for the vast unemployment rate is the educational
system which is NOT adjusted to the market necessities in Bosnia and Herzegovina. From
experience, the unemployment first hits the young people. This group is also the last one to
get back to work when the things improve. Given the choice, employers prefer to hire older
more experienced workers. Among young people, those with a higher level of education are
less likely to become unemployed and if, then usually for shorter periods of time. That is not
necessarily a solution. When someone finishes his/her education, he/she should be granted the
opportunity to get a job, to improve him-/ herself and to gain some experience and all this not
just for a few months at a time. Even though it is estimated that 70 percent of the new jobs in
the world, that will be created once the economy recovers, will require graduate level skills,
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(Jackson and Cameron 2009), this shall most certainly not be the case in Bosnia and
Herzegovina.
Another problem facing the educational systems in Bosnia and Herzegovina is that it
is, in itself, relatively expensive, and as previously mentioned, it is not adjusted to the needs
of the existing labor market. Beyond that, possible technological advances and general
investments in the Bosnian educational system are limited.
Young people are forced to wait for a job, often for long periods because of rigid rules
within the legal system. The youth happens to enjoy an unstable position in the labor market.
Another reason for the huge unemployment rate is attributed to the fact that only the
public administrative sector works. It is one of the largest employers because of its huge
bureaucracy. Bosnia and Herzegovina is well known for its complicated management system
on a state level. Its biggest problem is that there are regional administrative divisions between
entities which have their own governments, ministries etc. Unfortunately this happens to be
the only one state sector that employs people. Basically, the problem in the sector is its
particular susceptibility to nepotism and clientelism. Corruption is predominant trait and only
if someone has good relations with others can get a job. The citizens of Bosnia and
Herzegovina believe that, in comparison with the developed countries of Western Europe,
nepotism, bribery and corruption are a huge problem of the labor market in their state.
“Connections”, which you have to possess, are fundamental to get job, especially in the public
sector. Lack of political will, a clear strategic framework and mechanisms for implementing
policies for anticorruption programs characterize the entire post-war period in Bosnia and
Herzegovina. Results of anticorruption reforms are the most important factor, not just for the
state, but also for the progress in the European integration (Blagovčanin 2009). Prior to the
war, the industry in the state was the dominant sector and account for ca. 60 percent of the
GDP. After the war the industry was depleted and today it is only responsible for about 15
percent of the GDP. Of course this resulted in a reduced number of employment places. Many
factories and companies, which had employed an extensive number of people before the war,
no longer work nowadays (National Environmental Action Plan Bosnia and Herzegovina
2003).
The economic sector in the state, which employs most of the people, has been scaled
down drastically and almost become inexistent (there are no factories, industries, etc.). The
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war that lasted from 1992 until 1995 destroyed industrial plants and large parts of the
country’s infrastructure. Key markets were lost and many products which were once produced
in the country now have to be imported.
Causes and Effects:
The bridge between youth unemployment and social exclusion has been clearly
constructed; an inability to find a job creates a sense of vulnerability, uselessness and idleness
among young people and can heighten the preferences for getting involved in illegal actions.
That doesn’t help Bosnia and Herzegovina in its progress. Rather, it is cutting the
country off from the EU and all other possibilities that can lead her to evolve into a
prosperous and successful entity. To prevent social exclusion, we have to integrate young
people into society in order to profit from their capabilities, skills and high quality education.
It is also important to emphasize that one of the reasons for the high rate of
unemployment lies within the fact that young people are generally blind to this issue and
confused regarding the economic situation and its consequences in terms of the employment
rate. According to extensive research from 2003, 41 percent of young adults did not know
about the benefits of a prosperous economy. This fact points out that youth is not sufficiently
informed or trained to respond to a changing economic climate in Bosnia and Herzegovina.
While attending high school they do not receive any adequate information about the labor
market. Nobody actually pays particular attention to it. The same thing happens when
someone addresses the issue of wanting to go to college. It is nearly impossible to get advice
and information about different types of faculties, what these “promise” for the future or
generally which school one should try to attend. Unfortunately, the youth is left to itself. In
the end the people draw upon completely absurd and ineffective information in order to
decide where they will be attending school.
Another cause for unemployment is the fact that, if someone is unemployed, he/she
does not only have reduced or no income, but inadequate networks and thus fewer
opportunities to reintegrate into the social fabric. Social relations and different forms of social
activity play a significant role in the integration into the labor market.
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It is generally known that young people in Bosnia and Herzegovina are in less
favorable social and economic positions than other age groups, since they do not possess
property (property savings, shares etc.) and are having difficulties finding a place to live. In
most cases they stay with their parents well into their 20s or until they get married. The
majority of young people are forced to wait for long periods of time to get a job (due to lack
of experience, the rigidity of labor laws and so on). That is why they are one of the most
vulnerable groups in the labor market – young job seekers and graduates. Lack of work
experience is one of the most essential short-comings for young unemployed Bosnians. Then
there is another vital factor – the discrepancy between the professional structure of graduates
and demands of the labor market.
My opinion is also that the young often have unrealistic ideas about their wages, and
cannot realistically assess their options in the labor market. Young people and graduates often
make excessive demands regarding the type of work, working time and working
arrangements. Maybe that is the product of a lack of knowledge and the ignorance arising
from a lack experience. I have to admit that we have great ambitions, though. We (young)
immediately want to work as doctors, lawyers or in public service, not knowing that
sometimes it is necessary to start from scratch in order to advance and gain something more
later on in life. Having a diploma is not the only condition which we have to fulfill in life.
On the other side, employers do not want to hire young people lacking work
experience. In case of young women in particular, one of the reasons for their unemployment
is potential marriage, for they will thereupon probably soon go on maternity leave and that is
something that employers dislike.
What can be done? Policy proposal!
I am aware of the fact that this paper might not have a huge effect overall, but at least
it can raise awareness among the citizens of Bosnia and Herzegovina. A small group of
people cannot have immediate impact on the state representatives, but it can be bright leading
example for how things should function.
A pilot project is part of this written paper and its focus is on nongovernmental
organizations (here and after NGO) as part of interest groups that want address the issue of
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unemployment among young people. Organization will be formed on a volunteer basis, with
the basic aim of finding ways and programs to employing people.
NGO “Una Youth” will be an example of a pilot project for the whole state. Members
of the NGO will be selected on the basis of their occupations and interests. NGO will have
their own statute and representative bodies, each responsible for certain activities. Therefore
certain number of young highly qualified, yet unemployed, individuals will get some kind of
job. Those will be mostly lawyers and economists, since these professions are characterized
by a vast number of the unemployed in this particular Canton (76 percent of unemployed
economists and 41 percent of unemployed lawyers only in Municipality of Bihać; capitol of
Una-Sana Canton) (Annual Work Report 2011).
Through the help of the state representatives, especially with the already existing
cooperation with the Commission for the Coordination of Youth Issues in Bosnia and
Herzegovina, this NGO will become a member of the European Youth Parliament. That will
open additional doors for a cooperation and financial support from other European Union
organizations. Upon becoming a member of this Parliament, members representing us could
point out the main problems confronting the youth and place an emphasis on the fact that
unemployment is the most oppressing issue. In this way the European Union will be directly
connected with the state, providing advice and information that could help us. Since there is
also only one Initiative to become a member of this Parliament, our project will be just
another great reason to bring young Bosnians into this organization (European Youth
Parliament 2010).
The NGO „Una Youth“, with international support, will focus its work on the
following basic points:
 The first goal is to make a reform of the vocational education in partnership with
relevant ministries and schools-universities. That will include support from
international organizations (e.g. World Bank, European Union institution for
education, etc.), modernization of education programs, with basic aims to reduce high
rates of private universities and faculties (pressure on legislatures to change legal
requirements for the establishment of private universities);
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 The second goal will focus on forming municipal career counseling centers with the
necessary literature, statistics and information manuals about conditions in the labor
market;
 Every university will have a centre which will work under supervision and cooperation
with the Cantonal Employment Offices which will be accessible to everyone. Specific
individuals will help in teaching valuable skills to young people in order to help them
access job markets and prepare them for their first job;
 Employment Bureaus should take more active roles in promoting and ensuring fair
employment - concrete programs for mediation in youth employment (e.g. internships
for young workers should be promoted. Companies should get a tax stimulus in turn,
as is the practice in Western European countries). We only have few programs like
this and according to reports they don’t help a lot.
 With support from the Ministry for Education in the shape of annual campaigns and
seminars about brain-drain. One of the effects of unemployment is brain drain –
young, educated people are leaving the country. There is no formal organization or
propaganda that deals with this issue, and that wants to stop the aforementioned.
Examples:
1. We want more internships:
What proved to be most important is to legitimize the legal commitment of each
private company to employ and hire a certain number of interns. Trainees will acquire one
year of experience and have the right to take state or professional exam. The companies will
be financed by the state and international organizations.
What speaks quite in favor of the youth, especially the highly educated, is the fact that
the Parliament of the Federation of Bosnia and Herzegovina had adopted significant Act of
Regulation on March 20, 2012 which shall legally define volunteering as working experience
and stress the importance of, and add value to the only occupation many young people have,
since they are unemployed but willing to work hard without financial substitution. According
to this regulation, long time volunteering will be recognized as prior working experience
which will help facilitate the search for the first job. The law will enable young graduates to
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receive experience and knowledge, to become competitive on the labor market and to obtain
the possibility of employment immediately after the education period ends.
This Regulation is more than useful for the unemployed, because what most of the
employers demand, in addition to a diploma, is the work experience. What had always been a
problem for so many years is that none of the employees were ready or willing to employ a
recent graduate with remarkable grades, with outstanding performances and activities in the
non - government sector, if she or he did not possess “real” working experience.
This Regulation will crack the monopoly by which only the privileged get the
opportunity to receive an internship in one of the state ministries or to apply for a job. This
means that immediately after graduating, students will come out of the faculties as a
completed cadre, waiting to apply for job immediately. The Law will also regulate who can
engage in volunteer work and in which way they can volunteer; it will regulate the register of
volunteers, the protection of volunteers, criminal provision, etc.
That is only a temporary solution, though. Of course, it is great that everyone can
finally apply for job (especially in the public sectors), and maybe upon completing the work
some will stay and work for the same company, but at least they will have gained one years’
worth of experience. It is not a final solution, but it helps a lot.
2. Focus on work in “non-traditional” sectors, such as tourism:
In 2008 an area of the Una-Sana Canton was declared a National Park. That Park
presents the pillar of economic growth in this part of the country. Since it is still in the process
of development we will convince our representatives that young people have to work there.
And here are the reasons why:
- young people who have good knowledge of English and German can work as tourist guides:
This is the time when tourists will finally recognize Bosnia and Herzegovina as an appealing
traveling destination. They need young, educated and communicative people to show them
the beauties of our country. Who can do that job better than us?
- those who have diplomas in the agricultural sector can help in preserving the environment
(e.g. planning of new plantations and maintenance and preservation of the old).
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- many young people can work and help in the development of this eco-tourism, some of them
can get financial support and build an eco-village within the National Park. They can get a
certain amount of money from state and international organizations to invest into this project.
And after a set period of time they will return the invested money and continue to work with
their own capital.
A driving force within the project is the Municipality of Bihać, which is the only one
in Bosnia and Herzegovina that has, so far, signed three agreements with the European Union
for implementing the development of projects regarding National Parks. This is just another
one reason why one should adopt this proposal and invest in young educated people. They
know what is attractive and interesting and what will draw tourists, new investors and
contribute to the development of their country.
Of course that I am aware of the fact that this small pilot projects can not employ the
army of unemployed people in my country, but it can be a bright example of how to reduce
the number of unemployed. If every municipality and canton starts to do something similar, at
least half of the unemployed young could get a job somewhere, whether in the private or
public sector. It is important to stay optimistic.
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Herzegovina. Friedrich Ebert Stiftung. Retrieved on May, 3 2012.
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Durkheim, Emile. 1895. The rules of the sociological method. New York. Free Press.
European Youth Parliament. 2010. Annual Report.
(http://eyp.org/annual_report/Annual_report_eyp_2010.pdf)
Retrieved
on
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May 24, 2012
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